How to Achieve Double-Digit Growth in Managed Services

To be a managed service provider in the past few years has truly been worthwhile – and that’s not a mistake. Businesses have increased their demands for managed services, and the managed services providers have capitalized on this.

Indeed, IT services provider from Calgary, Acrodex reports that the amount of resources allocated to managed services in most companies is increasing. Available statistics indicate that 64% of firms have engaged the services of MSPs for at least one or more operational function. The statistics also suggest that MSPs are set to grow further, both with new and existing customers.

CompTIA’s 4th Annual Trends in Managed services report indicated that the global managed services would grow to $193 billion by 2019 at an average annual growth rate of 12.5%. Why have businesses increased their level of adoption? This article will highlight some of the factors which have led to increased adoption rates as well which have also fueled the growth of managed services.

Adoption of managed services has resulted in changes in customer requirements

Customer needs are evolving at a faster rate than ever. MSP customers have benefited from the availability of better services, greater agility, and lower costs. From the time customers have recognized these benefits, they have been able to accept more standardized managed service approached. This has enabled them to ask for more services from the MSPs.

The high growth in both managed services and cloud is a clear indication that IT is becoming more technical and complicated. This has led to increased willingness for customers to outsource or adopt more managed services. Many companies offering managed services have been overwhelmed by the number of customers requesting their services. This trend is not set to change anytime soon, and the MSP industry will continue growing.

Increasing popularity of the cloud

The cloud was still unknown to many businesses a few years ago. The businesses which were aware of its existence were reluctant to migrate to the cloud. This is because they did not trust the security and privacy of the cloud. However, those days are long gone.

These businesses have started to accept the cloud concept, and they are capitalizing on the advantages offered by cloud applications. Also, small businesses lack the personnel and technical expertise to assist them to move to the cloud by themselves. MSPs have capitalized on this opportunity too.

Research has indicated that 45% or businesses required outside help to initiate cloud computing initiatives. This number is projected to grow as more and more businesses continue to sign up for cloud services.

Changing customer attitudes have led to the acceptance of a broader set of services

Today, MSP have successfully offered a wide range of services without facing the traditional challenges and negativity about outsourcing IT services and loss of control. Previously, customers were afraid of managed services because of security concerns and performance related issues. This made MSPs to invest a lot of time trying to prove their efficiency and effectiveness.

However, a change in customer attitude and increased adoption of managed services has enabled MSPs to focus more on innovation and development. This has given the service providers the opportunity to come up with more services and improve the existing ones. Through this, the MSPs have been able to attract more customers, something vital for their growth.

Increasing complexity of IT environments

Technology is evolving very quickly. Today many businesses are looking for ways to utilize technology to improve their services. Businesses are finding it hard to manage a wider variety of technologies. Also, more employees are using laptops, tablets, and smartphones which have brought their challenges.

These challenges have created opportunities for managed service providers to develop new services to solve the evolving business needs. A study conducted by Business Solutions Magazines in 2016 revealed that nearly 75% managed service providers revealed that plans are in place to add new services. This move is aiming to help businesses to deal with the challenges they face.